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Activation Policies for the Poor in OIC Member States

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The Directorate’s Occupation Development Plan predicts that by 2025, some 50% of GDP will be

provided through entrepreneurial activities.

The National Organisation of Skill is one of the largest players in entrepreneurship education in Iran,

with technical and professional centres and colleges all over the country. The organisation provides

training and education for nearly 100 specialised fields of entrepreneurship, and technical and

vocational fields. Moreover, this organisation operates in close collaboration with entrepreneurship

education centres in Turin, Italy and the ILO. This organisation also plays an important role in

issuing permits for entrepreneurs.

MCLS has provided the opportunity for all entrepreneurs who have operational ideas but do not

have the necessary capital to establish public joint stock co-operatives. Those entrepreneurs that

have creative and feasible ideas, but do not have sufficient capital and are not able to use banking

facilities and loans, can form public joint stock co-operatives, under the supervision of MCLS.

The Ministry of Science, Research and Development and the Ministry of Education also play a key

role in the promotion of entrepreneurship. In relation to entrepreneurship, the Ministry of Science,

Research and Technology has put emphasis on educational workshops of entrepreneurship at large

universities, including a two or three credit course in the educational curriculum of university

degrees since 2001. The Ministry also played a key role in setting up the entrepreneurship

development plan in Iranian universities, known as KARAD Plan in twelve universities. The Ministry

of Education set up the Student Entrepreneurs Support Fund to encourage students and young

people to become entrepreneurs.

Entrepreneurship is also being encouraged in the agricultural sector. The Ministry of Jihad and

Agriculture, for example, has planned to provide training for 20,000 graduates of agriculture in

2014. This plan aims to upgrade the practical capabilities of the graduates of agriculture, to transfer

skill and practical experience and also to provide a suitable ground for them to enter the business

market. Based on this plan, the graduates of agriculture, natural resources and veterinary would be

trained for a period of 11 months at the private, cooperative and governmental centres of agriculture

and related industries, in order to gain skills and technical expertise. During this period, the trainees

receive financial assistance (in accordance with the minimum wage), approved by the Higher

Council of Labour.

The development of the agricultural sector is also being promoted by tools other than job creation.

As mentioned in the previous case studies, agricultural co-operatives can be significant economic

players that contribute to sustained economic growth. The co-operatives provide the opportunity for

poor farmers to raise their incomes. They also serve as institutions that empower the rural

population by encouraging them to come up with their own solutions. However, in Iran, co-

operatives do not currently play an important role in the lives of poorer farmers. This is because

farmers are not involved in agricultural co-operative planning and decision-making; decision-

making is mostly carried out by government representatives. The lack of farmer involvement in

policy formulation and implantation can curtail healthy and constructive engagement of rural

residents and farmers in co-operative activities and initiatives to address poverty reduction.

Farmers in Iran are generally not aware of the basic function and role of a co-operative. This has an

effect on the apathy regarding rural residents’ participation in rural co-operatives. Other barriers

which can discourage involvement in co-operatives include poor management, lack of resources,

lack of autonomy due to government interference, inadequate access to markets, lack of

collaboration culture, lack of co-operatives’ leaders’ knowledge, and dependence of co-operatives on

government.

Entrepreneurship is also promoted at the municipality level. The Tehran Municipality has created 23

entrepreneurship centres and 304 entrepreneurship houses, in order to develop an

entrepreneurship culture. Each of the municipal community centres includes 13 entrepreneurship

houses, one of which is the house of empowerment and popular collaboration. This house is in

charge of education, observation, promotion and development of entrepreneurship and local